Problems For Industry

Press, Volume CVI, Issue 31318, 14 March 1967, Page 20

Problems For Industry

(N.Z. Pres* A**ociat«onX NEW PLYMOUTH, Mar. 12. Industry in New Zealand faced a host of problems and difficulties brought about by cuts in the supply of raw materials and the curtailment of demand, the president of the Manufacturers’ Federation (Mr H. W. Reed) told the annual conference of the Photo Process Federation at the Chateau Tongariro today.

“We have been passing through a period of rapidly rising costs, and unhappily the end of this cycle is not in sight,” he said. “Many of these costs are not related directly to the level of production and will have to be met even if our output falls.

“This means that every manufacturer will have to watch every item in his costs more closely than ever; every

person in industry must become more cost and time and effort-conscious; any tendency for effort to slacken—which could arise very easily at such a time—must be strongly resisted, for the results could be disastrous," said Mr Reed. “That objective applies to the Government, and to Government spending, as well as to industry. A start has been made, but a good deal more is necessary. "However, there is another objective for the Government. It is this—that the highest priority must be given to the supply of raw materials for industry, which will help us to produce better export products to meet competition on world markets," said Mr Reed. “The effects of a curtailment in factory production through import cuts will be felt right through the eco-

nomy—through the transport industries and through many ancillary services and by the work-force. It is of the greatest national importance that these effects should not retard the export effort which should have the highest priority in the form of encouragement and incentives, and also in the assurance of necessary supplies of materials. “While I have referred to problems and difficulties, I do not intend to close on a pessimistic note because I am confident it is not justified by the circumstances. New Zealand has come through a period of very rapid growth in which manufacturers have “It is time to take stock, to consolidate, and. to prepare for future growth in which I am certain your industry will have a big and expanding role,” said Mr Reed.